Unlike traditional currencies, cryptocurrencies are not issued or controlled by any government or financial institution. Instead, they are created through a process called mining, in which powerful computers solve complex mathematical problems to verify and record transactions on the blockchain.
Cryptocurrencies are also characterized by their decentralization and anonymity. Transactions are conducted peer-to-peer, without the need for intermediaries like banks or payment processors. The identities of the parties involved are kept anonymous, although the transactions themselves are recorded on the blockchain and are publicly visible.
Some of the most popular cryptocurrencies include Bitcoin, Ethereum, and Litecoin, but there are thousands of other cryptocurrencies in circulation. The value of cryptocurrencies is highly volatile, and they are often used as a speculative investment or as a means of payment for goods and services in the online world.
